Bill 10, Opportunity in the Sharing Economy Act, 2016

An Act to enact two new Acts and to amend other Acts to regulate transportation network vehicles, to provide freedom for individual residential property owners to share their property for consideration with others and to deal with the expenses of public sector employees and contractors in that connection

CONTENTS

1.

Contents of Act

2.

Commencement

3.

Short title

Schedule 1

Competition in Public Sector Employee and Contractor Expenses Act, 2016

Schedule 2

Amendments Related to Home and Parking Sharing

Schedule 3

Transportation Network Vehicles Act, 2016

______________

Her Majesty, by and with the advice and consent of the Legislative Assembly of the Province of Ontario, enacts as follows:

Contents of Act

1. This Act consists of this section, sections 2 and 3 and the Schedules to this Act.

Commencement

2. (1) Subject to subsections (2) and (3), this Act comes into force on the day it receives Royal Assent.

Schedules

(2) The Schedules to this Act come into force as provided in each Schedule.

Different dates for same Schedule

(3) If a Schedule to this Act provides that any of its provisions are to come into force on a day to be named by proclamation of the Lieutenant Governor, a proclamation may apply to one or more of those provisions, and proclamations may be issued at different times with respect to any of those provisions.

Short title

3. The short title of this Act is the Opportunity in the Sharing Economy Act, 2016.

(a) the Crown in right of Ontario, an agency of it, or an authority, a board, a commission, a corporation, an office or an organization of persons, a majority of whose members, directors or officers are appointed or chosen by or under the authority of the Lieutenant Governor in Council or a member of the Executive Council,

(b) the corporation of a municipality in Ontario,

(c) a local board as defined by the Municipal Affairs Act or an authority, a board, a commission, a corporation, an office or an organization of persons, some or all of whose members, directors or officers are appointed or chosen by or under the authority of the council of the corporation of a municipality in Ontario,

(d) a board within the meaning of the Education Act,

(e) a university in Ontario or a college of applied arts and technology or post-secondary institution in Ontario, whether or not affiliated with a university, the enrolments of which are counted for purposes of calculating annual operating grants entitlements,

(f) a hospital referred to in the list of hospitals and their grades and classifications maintained by the Minister of Health and Long-Term Care under the Public Hospitals Act or a private hospital operated under the authority of a licence issued under the Private Hospitals Act,

(g) a corporation with share capital, at least 90 per cent of the issued shares of which are beneficially held by or for an employer or employers described in clauses (a) to (f), and every wholly-owned subsidiary of the corporation,

(h) a corporation without share capital, the majority of whose members, directors or officers are members of, or are appointed or chosen by or under the authority of, an employer or employers described in clauses (a) to (f), or a wholly-owned subsidiary of the corporation,

(i) a board of health under the Health Protection and Promotion Act,

(j) the Office of the Lieutenant Governor of Ontario, the Office of the Assembly, a member of the Assembly or the offices of persons appointed on an address of the Assembly,

(k) Hydro One Inc. or any of its subsidiaries,

(l) Ontario Power Generation Inc. or any of its subsidiaries, and

(m) any authority, board, commission, corporation, office, person or organization of persons, or any class of authorities, boards, commissions, corporations, offices, persons or organizations of persons, prescribed by the regulations made under this Act; (“secteur public”)

“transportation network” means a digital network or other electronic means that allows persons to arrange to receive transportation, for compensation, in a transportation network vehicle; (“réseaunumériquede transport”)

“transportation network vehicle” means a motor vehicle, within the meaning of the Highway Traffic Act, that,

(a) has a seating capacity of not more than 10 persons, exclusive of the driver, and

(b) is hired through the use of a transportation network for one specific trip for the transportation exclusively of one person or group of persons or their personal belongings, where only one fare or charge is collected or made for the trip,

but does not include a taxicab, for which the owner or driver is required to have a licence under a by-law made under the City of Toronto Act, 2006 or the Municipal Act, 2001. (“véhicule de réseau”)

Entering into public sector contracts

2. (1) No person or body that forms part of the public sector shall, in calling for tenders for any work, refuse to consider a bid for the sole reason that it proposes that the persons who will perform the work, or any part of it, can or will, in order to perform the work, arrange to,

(a) receive transportation in transportation network vehicles through the use of a transportation network in accordance with the Transportation Network Vehicles Act, 2016; or

(b) use real property in accordance with section 91.1 of the City of Toronto Act, 2006 or section 153.1 of the Municipal Act, 2001.

Same

(2) No person or body that forms part of the public sector shall refuse to enter into a contract for the performance of work for the sole reason that the contract permits or requires that the persons who will perform the work, or any part of it, can or will, in order to perform the work, arrange to,

(a) receive transportation in transportation network vehicles through the use of a transportation network in accordance with the Transportation Network Vehicles Act, 2016; or

(b) use real property in accordance with section 91.1 of the City of Toronto Act, 2006 or section 153.1 of the Municipal Act, 2001.

Terms of work for employees and contractors

3. No person or body that forms part of the public sector and that engages any employee or contractor to perform work on its behalf shall prevent the employee or contractor from arranging, in order to perform the work, to,

(a) receive transportation in transportation network vehicles through the use of a transportation network in accordance with the Transportation Network Vehicles Act, 2016; or

(b) use real property in accordance with section 91.1 of the City of Toronto Act, 2006 or section 153.1 of the Municipal Act, 2001.

Act prevails

4. This Act prevails despite any other Act or agreement to the contrary.

Regulations

5. The Lieutenant Governor in Council may make regulations,

(a) doing anything described as prescribed in clause (m) of the definition of “public sector” in section 1;

(b) governing transitional matters that, in the opinion of the Lieutenant Governor in Council, are necessary to implement this Act or the regulations made under it.

Review of Act

6. A committee of the Legislative Assembly shall,

(a) begin a comprehensive review of this Act not later than the fifth anniversary of the day on which this section comes into force; and

(b) within one year after beginning that review, make recommendations to the Assembly concerning amendments to this Act.

Commencement

7. The Act set out in this Schedule comes into force on the day the Opportunity in the Sharing Economy Act, 2016 receives Royal Assent.

Short title

8. The short title of the Act set out in this Schedule is the Competition in Public Sector Employee and Contractor Expenses Act, 2016.

Schedule 2
AMENDMENTS RELATED TO Home AND PARKING Sharing

City of Toronto Act, 2006

1. The City of Toronto Act, 2006 is amended by adding the following section:

Sharing use of residential property

91.1 (1) Despite sections 7 and 8, the City shall not pass a by-law requiring an individual to have a licence in order to allow a third party, for consideration, to use real property that the individual owns, whether the property is space that is designed for living accommodation or is a parking space and whether or not the third party uses the property in conjunction with the individual, if,

(a) the property is zoned for use for residential or ancillary purposes for the entire time that the third party uses the property;

(b) all third parties combined who use the property do so for no more than 120 days in a calendar year if the property is not a parking space; and

(c) the individual maintains insurance for damage to the property that is caused by major perils and the insurance is maintained in accordance with the prescribed requirements, if any.

(a) prescribing requirements for the insurance described in clause (1) (c), including specifying the amounts required for the insurance; and

(b) governing transitional matters that, in the opinion of the Lieutenant Governor in Council, are necessary to implement this section.

Review of section

(4) A committee of the Legislative Assembly shall,

(a) begin a comprehensive review of this section not later than the fifth anniversary of the day on which it comes into force; and

(b) within one year after beginning that review, make recommendations to the Assembly concerning amendments to this section.

Municipal Act, 2001

2. The Municipal Act, 2001 is amended by adding the following section:

Sharing use of residential property

153.1 (1) Despite sections 9, 10, 11 and 151, a municipality shall not pass a by-law requiring an individual to have a licence in order to allow a third party, for consideration, to use real property that the individual owns, whether the property is space that is designed for living accommodation or is a parking space and whether or not the third party uses the property in conjunction with the individual, if,

(a) the property is zoned for use for residential or ancillary purposes for the entire time that the third party uses the property;

(b) all third parties combined who use the property do so for no more than 120 days in a calendar year if the property is not a parking space; and

(c) the individual maintains insurance for damage to the property that is caused by major perils and the insurance is maintained in accordance with the prescribed requirements, if any.

(a) prescribing requirements for the insurance described in clause (1) (c), including specifying the amounts required for the insurance; and

(b) governing transitional matters that, in the opinion of the Lieutenant Governor in Council, are necessary to implement this section.

Review of section

(4) A committee of the Legislative Assembly shall,

(a) begin a comprehensive review of this section not later than the fifth anniversary of the day on which it comes into force; and

(b) within one year after beginning that review, make recommendations to the Assembly concerning amendments to this section.

Planning Act

3. (1) Section 2 of the Planning Act is amended by adding the following clause:

(s) the intensification of the use of land for residential or ancillary purposes by permitting the sharing of such land among residents.

(2) Section 34 of the Act is amended by adding the following subsections:

Sharing use of residential land

(5.1) No by-law passed under paragraph 1 or 2 of subsection (1) or a predecessor of that paragraph shall prohibit an individual who owns land from allowing a third party, for consideration, to use the whole or part of the land, whether or not the third party uses it in conjunction with the individual, if,

(a) the land that the third party uses is zoned for use for residential or ancillary purposes for the entire time that the third party uses it;

(b) all third parties combined who use the land do so for no more than 120 days in a calendar year if the land is not a parking space; and

(c) the individual maintains insurance for damage to the land in accordance with clause 91.1 (1) (c) of the City of Toronto Act, 2006 or clause 153.1 (1) (c) of the Municipal Act, 2001, as applicable.

No deemed change of use

(5.2) No by-law passed under paragraph 1 or 2 of subsection (1) or a predecessor of that paragraph shall deem that a change of use has occurred if an individual allows a third party to use land in accordance with subsection (5.1).

Review of subs. (5.1) and (5.2)

(5.3) A committee of the Legislative Assembly shall,

(a) begin a comprehensive review of subsections (5.1) and (5.2) not later than the fifth anniversary of the day on which they come into force; and

(b) within one year after beginning that review, make recommendations to the Assembly concerning amendments to subsections (5.1) and (5.2).

(3) The Act is amended by adding the following section:

Sharing parking spaces

40.1 If an individual who owns land that includes a parking space allows a third party, for consideration, to use a parking space located on the land, whether or not in conjunction with the individual, the individual shall ensure that each parking space located on the land has direct and unrestricted access to the roadway, within the meaning of the Highway Traffic Act, to which the land has access.

(4) Section 70 of the Act is amended by adding the following clause:

(0.a) governing transitional matters that, in the opinion of the Lieutenant Governor in Council, are necessary to implement subsection 34 (5.1) or (5.2) or section 40.1;

Commencement

4. This Schedule comes into force on the day the Opportunity in the Sharing Economy Act, 2016 receives Royal Assent.

Schedule 3
Transportation Network Vehicles Act, 2016

CONTENTS

PART I
INTERPRETATION

1.

Definitions

2.

Conflict

PART II
LICENCES AND OPERATING PERMITS

Licences

3.

Licence of transportation network company

4.

Application for licence

5.

Conditions of licence

6.

Refusal, suspension or revocation

7.

Notice of refusal, suspension or revocation

8.

Continuation pending renewal

9.

Immediate suspension

10.

Notice to permittees

11.

Further application

12.

Transition, licences

Operating Permits

13.

Operating permit required

14.

Application for operating permit

15.

Issuance of operating permit

16.

Conditions of operating permit

17.

Refusal to issue an operating permit

18.

Suspension or revocation of operating permit

19.

Cancellation on request

20.

Transition, operating permits

PART III
REGULATION OF TRANSPORTATION NETWORK COMPANIES AND PERMITTEES

Transportation Network Companies

21.

Notice to municipality and Board

22.

Use of transportation network

23.

Monitoring permittees

24.

Wheelchair accessible vehicles

25.

Information about permittee

26.

Fare information

27.

Records of contacts

28.

Trip receipt

29.

Tax on transportation network companies

Permittees

30.

Change in address for service

31.

Hiring a transportation network vehicle

32.

Trip records

33.

No impairment

PART IV
INQUIRIES

34.

Inquiries made of licensees

35.

Inquiries made of permittees

PART V
GENERAL

36.

Offences

37.

Confidentiality

38.

Service

39.

Fees

40.

Regulations

41.

Review of Act

PART VI
CONSEQUENTIAL AMENDMENTS

42.

City of Toronto Act, 2006

43.

Highway Traffic Act

44.

Licence Appeal Tribunal Act, 1999

45.

Municipal Act, 2001

46.

Public Vehicles Act

PART VII
COMMENCEMENT AND SHORT TITLE

47.

Commencement

48.

Short title

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PART I
INTERPRETATION

Definitions

1. In this Act,

“Board” means the Ontario Highway Transport Board; (“Commission”)

“identification card” means, in respect of a permittee, the identification card issued to the permittee under subsection 15 (2); (“carte d’identité”)

“permittee” means the holder of an operating permit; (“titulaire de licence”)

“prescribed” means prescribed by the regulations made under this Act; (“prescrit”)

“regulations” means the regulations made under this Act unless the context otherwise specifies; (“règlements”)

“transportation network” means a digital network or other electronic means that allows persons to arrange to receive transportation, for compensation, in a transportation network vehicle; (“réseau numérique de transport”)

“transportation network vehicle” means a motor vehicle, within the meaning of the Highway Traffic Act, that,

(a) has a seating capacity of not more than 10 persons, exclusive of the driver, and

(b) is hired through the use of a transportation network for one specific trip for the transportation exclusively of one person or group of persons or their personal belongings, where only one fare or charge is collected or made for the trip,

but does not include a taxicab, for which the owner or driver is required to have a licence under a by-law made under the City of Toronto Act, 2006 or the Municipal Act, 2001; (“véhicule de réseau”)

“Tribunal” means the Licence Appeal Tribunal. (“Tribunal”)

Conflict

2. In the event of a conflict, a provision of this Act or the regulations made under it prevails over a provision of any other Act or the regulations or by-laws made under them to the extent of the conflict.

PART II
Licences and operating permits

Licences

Licence of transportation network company

3. (1) No person or entity shall act as a transportation network company unless the person or entity is licensed as a transportation network company by,

(a) a municipality, if a by-law that the municipality is legally authorized to pass requires the person or entity to hold such a licence; or

(b) the Board, if no by-law that a municipality is legally authorized to pass requires the person or entity to hold such a licence.

Application of sections 4 to 11

(2) Sections 4 to 11 apply only to a licence issued by the Board, and not to a licence issued by a municipality.

Application for licence

4. (1) An applicant for a licence issued by the Board that pays the required fee and that meets the prescribed requirements is entitled to a licence or a renewal of a licence by the Board unless,

(a) the applicant is carrying on activities that are, or will be if the applicant is licensed, in contravention of this Act or the regulations;

(b) the applicant is in breach of a condition of the licence; or

(c) the applicant fails to comply with a request made by the Board under subsection (2).

Request for information

(2) The Board may request an applicant for a licence or a renewal of a licence to provide to the Board, in the form and within the time period specified by the Board,

(a) information specified by the Board that is relevant to the decision to be made by the Board as to whether or not to grant the licence or renewal; and

(b) verification, by affidavit or otherwise, of any information described in clause (a) that the applicant is providing or has provided to the Board.

Conditions of licence

5. (1) A licence is subject to the conditions to which the applicant or licensee consents, that the Board imposes, that the Tribunal orders, that are specified in this section or that are prescribed.

Licence not transferable

(2) A licence is not transferable.

Facilitating inquiries

(3) It is a condition of every licence that the licensee facilitate inquiries under this Act relating to the licensee.

Refusal, suspension or revocation

6. (1) Subject to section 7, the Board may refuse to license an applicant or may suspend or revoke a licence or refuse to renew a licence if, in its opinion, the applicant or licensee is not entitled to a licence under section 4.

Conditions

(2) Subject to section 7, the Board may,

(a) approve the licence or the renewal of a licence on the conditions that the Board considers appropriate; and

(b) at any time, apply to a licence the conditions that the Board considers appropriate.

Notice of refusal, suspension or revocation

7. (1) The Board shall notify an applicant or licensee in writing if it proposes to,

(a) refuse under subsection 6 (1) to grant or renew a licence;

(b) suspend or revoke a licence; or

(c) apply conditions to a licence or renewal to which the applicant or licensee has not consented.

Content of notice

(2) The notice of proposal shall set out the reasons for the proposed action and shall state that the applicant or licensee is entitled to a hearing by the Tribunal if the applicant or licensee mails or delivers, within 15 days after service of the notice, a written request for a hearing to the Board and to the Tribunal.

Service of notice

(3) The notice of proposal shall be served on the applicant or licensee in accordance with section 38.

Service of hearing request

(4) A request for a hearing under subsection (2) shall be served on the Board and the Tribunal in accordance with section 38.

If no request for hearing

(5) If the applicant or licensee does not request a hearing in accordance with subsection (2), the Board may carry out the proposal.

Hearing

(6) If the applicant or licensee requests a hearing in accordance with subsection (2), the Tribunal shall hold the hearing and may, by order, direct the Board to carry out the Board’s proposal or substitute its opinion for that of the Board and the Tribunal may attach conditions to its order or to a licence.

Parties

(7) The Board, the applicant or licensee and the other persons that the Tribunal specifies are parties to the proceedings under this section.

Immediate effect

(8) Even if a licensee appeals an order of the Tribunal under section 11 of the Licence Appeal Tribunal Act, 1999, the order takes effect immediately, unless the order provides otherwise, but the Divisional Court may grant a stay until the disposition of the appeal.

Voluntary cancellation

(9) The Board may cancel a licence upon the request in writing of the licensee and this section does not apply to the cancellation.

Continuation pending renewal

8. If, within the time prescribed or, if no time is prescribed, before the expiry of the licensee’s licence, the licensee has applied for a renewal of a licence and paid the required fee, the licence shall be deemed to continue until,

(a) the renewal is granted;

(b) the time for requesting a hearing under section 7 has expired if the licensee receives a notice of proposal under that section and does not request such a hearing; or

(c) the Tribunal makes its order if the licensee receives a notice of proposal under section 7 and does request such a hearing.

Immediate suspension

9. (1) If the Board proposes to suspend or revoke a licence under section 6 and if the Board considers it in the public interest to do so, it may by order temporarily suspend the licence.

Immediate effect

(2) An order under subsection (1) takes effect immediately.

Expiry of order

(3) If the licensee requests a hearing under section 7, the order expires 15 days after the Tribunal receives the written request for a hearing, but the Tribunal may extend the time of expiration until the hearing is concluded, if a hearing is commenced within the 15-day period.

Same

(4) Despite subsection (3), if it is satisfied that the conduct of the licensee has delayed the commencement of the hearing, the Tribunal may extend the time of the expiration for the order,

(a) until the hearing commences; and

(b) once the hearing commences, until the hearing is concluded.

Notice to permittees

10. Once a decision of the Board to refuse a person or an entity a licence or a renewal of a licence or to suspend or revoke a licence of a person or an entity has become final, the Board shall give notice in writing of the decision to every permittee to whom the person or entity has issued an operating permit that has not been revoked or cancelled under this Act.

Further application

11. Once a decision of the Board to refuse a person or an entity a licence or a renewal of a licence or to revoke a licence of a person or an entity has become final, the person or entity may reapply for a licence only if,

(a) the prescribed time to reapply has passed since the refusal or revocation; and

(b) the person or entity satisfies the Board that new or other evidence is available or that material circumstances have changed.

Transition, licences

12. (1) A corporation, partnership, sole proprietor, association or other entity or individual that operates a transportation network on the day this section comes into force is deemed to hold, until the later of 60 days after the day this section comes into force and the expiry of the prescribed time, if any,

(a) a licence issued by the applicable municipality if the licence is required under clause 3 (1) (a); or

(b) a licence issued by the Board if the licence is required under clause 3 (1) (b).

Application for municipal licence

(2) If a corporation, partnership, sole proprietor, association or other entity or individual that is deemed to hold a licence described in clause (1) (a) applies for a licence issued by the municipality and pays the required fee within the prescribed time mentioned in subsection (1), the applicant continues to be deemed to hold the licence until the municipality issues it or refuses to issue it to the applicant.

Application for Board licence

(3) If a corporation, partnership, sole proprietor, association or other entity or individual that is deemed to hold a licence described in clause (1) (b) applies for a licence issued by the Board and pays the required fee within the prescribed time mentioned in subsection (1), the applicant continues to be deemed to hold the licence until,

(a) the Board issues the licence to the applicant;

(b) the time for requesting a hearing expires, if the Board, under section 7, has proposed to refuse to issue the licence and the applicant has not requested a hearing; or

(c) the Tribunal makes an order directing the Board to carry out the Board’s proposal to refuse to issue the licence, if the Board, under section 7, has proposed to refuse to issue the licence and the applicant has requested a hearing.

Operating Permits

Operating permit required

13. (1) No person shall operate a transportation network vehicle that is hired through the use of a transportation network unless,

(a) the person holds an operating permit that identifies the vehicle for which it is issued, using its licence plate number, and that names the transportation network company that issued the permit; and

(b) the transportation network company is licensed and is the one that issued the permit.

Validity ceases

(2) An operating permit ceases to be valid if the transportation network company that issued it ceases to be licensed.

Application for operating permit

14. (1) A person may apply to a licensed transportation network company for an operating permit for a transportation network vehicle.

Eligibility

(2) A person is eligible for an operating permit only if,

(a) the person is an individual who has attained the age of 21 years;

(b) the person holds a valid driver’s licence;

(c) the person owns or leases a motor vehicle that the person will use as a transportation network vehicle or is authorized by the owner or lessee of a motor vehicle to use it as a transportation network vehicle;

(d) there exists a currently validated permit for the vehicle mentioned in clause (c) that is issued under the Highway Traffic Act;

(e) there exists a valid contract of insurance for the vehicle mentioned in clause (c) as required by the Compulsory Automobile Insurance Act;

(g) in the three-year period before applying for the permit, the person has not been convicted of more than three offences under the Highway Traffic Act involving movement of a motor vehicle within the meaning of that Act; and

(h) the person has not been convicted of any offences under the Criminal Code (Canada), the Controlled Drugs and Substances Act (Canada) or any other Act of Canada in respect of which the person has not received a record suspension under the Criminal Records Act (Canada).

Form of application

(3) An application for the issuance of an operating permit shall be in a form approved by the transportation network company, shall be completed and signed by the applicant and shall include,

(a) the applicant’s name and address for service in Ontario;

(b) all material with respect to the application that the company may reasonably require to establish the applicant’s eligibility for the permit, including a copy of the items described in clauses (2) (b), (d) and (e);

(c) the applicant’s written consent to have a police force release to the company or an agent acting on behalf of the company a copy of the record of,

(i) all offences under the Criminal Code (Canada), the Controlled Drugs and Substances Act (Canada) or any other Act of Canada, of which the applicant has been convicted and in respect of which the applicant has not received a record suspension under the Criminal Records Act (Canada), and

(ii) all offences under the Highway Traffic Act, of which the applicant has been convicted; and

(d) a photo of the applicant.

Issuance of operating permit

15. (1) A transportation network company that issues an operating permit shall name itself in the permit and shall identify the transportation network vehicle for which the permit is issued, using its licence plate number.

Identification card

(2) Upon issuing an operating permit, a transportation network company shall issue to the permittee an identification card, whether in written or electronic form, bearing the name of the permittee and the signature of a duly authorized agent of the company, or a facsimile of it, and including a photo of the permittee.

Return of identification card

(3) A permittee to whom a transportation network company has issued an identification card shall return it to the company as soon as the operating permit is no longer in effect under this Act and shall not make any further use of the permit.

Conditions of operating permit

16. (1) An operating permit is subject to those conditions to give effect to the purposes of this Act that the transportation network company that issues the permit imposes, that are specified in this section or that are prescribed.

No transfers

(2) An operating permit is not transferable.

Facilitating inquiries

(3) It is a condition of every operating permit that the permittee facilitate inquiries and investigations under this Act relating to the permittee.

Refusal to issue an operating permit

17. (1) A transportation network company shall refuse to issue an operating permit to an applicant on finding that,

(a) the applicant is not eligible for the permit under section 14; or

(b) the past conduct of the applicant affords reasonable grounds to believe that the applicant will not carry on business in accordance with law and with integrity and honesty.

No hearing required

(2) A transportation network company is not required to hold a hearing or to afford to any person an opportunity for a hearing before refusing to issue an operating permit under subsection (1).

Notice

(3) A transportation network company that decides to refuse to issue an operating permit shall serve a copy of the decision, together with written reasons for the decision, on the applicant for the permit and the decision takes effect immediately on being served.

Suspension or revocation of operating permit

18. (1) The transportation network company that issues an operating permit may suspend or revoke the permit if the company has reasonable grounds to believe that the permittee is no longer eligible for the permit or has contravened or failed to comply with this Act, the regulations or the conditions of the permit.

No hearing required

(2) A transportation network company is not required to hold a hearing or to afford to any person an opportunity for a hearing before suspending or revoking an operating permit under subsection (1).

Notice

(3) A transportation network company that decides to suspend or revoke an operating permit shall serve a copy of the decision on the permittee and the decision takes effect immediately on being served.

Contents of decision

(4) The decision shall include written reasons for the decision and shall indicate the time for which the operating permit is suspended if the decision is for a suspension.

Suspended operating permit

(5) No permittee whose operating permit is suspended may apply to a transportation network company for an operating permit during the suspension.

Cancellation on request

19. A transportation network company that has issued an operating permit may cancel it upon the request in writing of the permittee.

Transition, operating permits

20. (1) An individual who operates a transportation network vehicle on the day this section comes into force is deemed to hold an operating permit until the later of 60 days after the day this section comes into force and the expiry of the prescribed time, if any.

Application for operating permit

(2) If an individual who is deemed to hold an operating permit under subsection (1) applies for an operating permit within the prescribed time mentioned in subsection (1), the applicant continues to be deemed to hold an operating permit until the applicable licensed transportation network company issues it or refuses to issue it to the applicant.

PART III
Regulation of Transportation Network Companies and permittees

Transportation Network Companies

Notice to municipality and Board

21. (1) A transportation network company that holds a licence issued by a municipality or the Board shall notify the municipality or the Board, as the case may be, in writing within five days of,

(a) changing its address for service; or

(b) issuing an operating permit to a permittee, suspending, revoking or cancelling an operating permit or receiving a notice of change in address for service for a permittee.

Notice re permittee

(2) The notice required by clause (1) (b) shall include the name and address for service of the permittee.

Use of transportation network

22. A transportation network company shall ensure that its transportation network does not allow persons to arrange to receive transportation, for compensation, in a transportation network vehicle unless the vehicle is operated by a permittee who holds a valid operating permit issued by the company.

Monitoring permittees

23. (1) A transportation network company that issues an operating permit shall have a reasonable system in place for,

(a) advising the permittee of the permittee’s legal obligations while operating a transportation network vehicle, including the obligation to comply with the Human Rights Code; and

(b) monitoring the permittee to determine whether the permittee is no longer eligible for the permit or has contravened or failed to comply with this Act, the regulations or the conditions of the permit.

Response to complaints

(2) If a person uses a transportation network to arrange a trip in a transportation network vehicle and registers a complaint about the trip with the network in accordance with the complaint procedure mentioned in clause 25 (b), the transportation network company shall,

(a) investigate the complaint; and

(b) suspend the operating permit of the permittee for the vehicle for the time that the company requires to investigate the complaint, if the complaint alleges that the permittee was under the influence of alcohol or drugs during the trip.

Record of investigations

(3) A transportation network company shall keep written records of the results of the investigations that it conducts under clause (2) (a) and shall retain those records for a period of two years after making them.

Wheelchair accessible vehicles

24. (1) A transportation network company shall ensure that the transportation network provides a means whereby a person who contacts the network to hire a transportation network vehicle for a trip can indicate whether the person requires that the vehicle be wheelchair accessible.

Information about other networks and vehicles

(2) If none of the transportation network vehicles in which a transportation network allows a person to arrange to receive transportation is wheelchair accessible and is available, the transportation network company shall ensure that the network indicates, to the knowledge of the company,

(a) what other transportation networks operate in the area where the person requests to receive transportation and allow the person to arrange to receive transportation in transportation network vehicles that are wheelchair accessible; and

(b) what taxicabs or other transportation facilities that are wheelchair accessible operate in the area where the person requests to receive transportation.

Information about permittee

25. If a person contacts a transportation network to hire a transportation network vehicle for a trip, the transportation network company shall ensure that the network makes available to the person, at all times starting with the time at which the trip is to start,

(a) a copy of the identification card of the permittee for the vehicle and the licence plate number of the vehicle; and

(b) a description of the procedure whereby the person can register a complaint with the network if the person is dissatisfied with the trip, including if the permittee for the vehicle was under the influence of alcohol or drugs during the trip.

Fare information

26. (1) If a person contacts a transportation network to hire a transportation network vehicle for a trip, the transportation network company shall ensure that the network advises the person of the following, no later than the time at which the trip is to start:

1. The method for calculating the fare that the permittee will charge for the trip.

2. The right of the person to request, from the network no later than the time at which the trip is to start, an estimate of the fare that the permittee for the vehicle will charge for the trip.

Estimate upon request

(2) If a person who contacts a transportation network to hire a transportation network vehicle for a trip requests a fare estimate described in subsection (1), the transportation network company shall ensure that the network provides the estimate to the person no later than the time at which the trip at which the trip is to start.

Records of contacts

27. If a person contacts a transportation network to hire a transportation network vehicle for a trip, the transportation network company shall ensure that the network keeps a record of the contact, including all requests made by the person and all information given to the person during the course of the contact, for a year after the person contacted the network.

Trip receipt

28. (1) If a person hires a transportation network vehicle for a trip through the use of a transportation network, the transportation network company shall, as soon as reasonably possible after the network receives the record for the person’s trip under subsection 32 (2), send an electronic copy of the record to the person.

Retaining records

(2) A transportation network company shall keep a copy of the records that the network receives under subsection (1) for a period of one year after receiving them.

Tax on transportation network companies

29. The Board may impose a tax on a transportation network company that holds a licence issued by the Board if,

(a) the Legislative Assembly by appropriation authorizes the tax;

(b) the purpose of the tax is to help ensure that there are transportation network companies, taxicabs and other transportation facilities operating in Ontario that allow persons to arrange to receive transportation in motor vehicles, within the meaning of the Highway Traffic Act, that are wheelchair accessible; and

(c) the tax is calculated as an amount, not to exceed 5 cents, for each fare that the operator of a transportation network vehicle charges a person for a trip in the vehicle that the person has arranged to take through the use of the transportation network.

Permittees

Change in address for service

30. A permittee who changes address for service shall notify the transportation network company that issued the operating permit by giving written notice within five days of making the change.

Hiring a transportation network vehicle

31. (1) A permittee shall not solicit or accept hiring of the transportation network vehicle for trips except through the use of the transportation network operated by the transportation network company that issued the operating permit.

Electronic payment of fare

(2) A permittee shall have in place the means to accept electronic payment for the fare for a trip for which a person hires the transportation network vehicle and shall so advise the person.

Trip records

32. (1) A permittee whose transportation network vehicle is hired for a trip shall keep a written record, for each such trip, of,

(a) the origin and destination of the trip;

(b) the total time and distance involved in the trip; and

(c) the total compensation that the permittee received for the trip, showing the amount of the fare charged and any additional amounts.

Copy to transportation network company

(2) As soon as is reasonably possible, a permittee shall transmit a copy of each of the records described in subsection (1) to the transportation network company that operates the transportation network through whose use the transportation network vehicle was hired.

No impairment

33. No permittee shall operate a transportation network vehicle while under the influence of alcohol or drugs.

Part IV
Inquiries

Inquiries made of licensees

34. (1) A duly appointed agent of the Board may make inquiries in accordance with this section for the purpose of,

(a) ensuring that a licensee, to whom the Board has issued a licence, complies with this Act and the regulations; or

(b) ensuring that a licensee, to whom the Board has issued a licence, remains entitled to the licence.

Powers

(2) As part of making inquiries under this section, an agent may,

(a) make reasonable inquiries of any person, orally or in writing, with respect to anything relevant to the purposes specified in subsection (1); or

(b) require a person to produce any document or record relevant to the purposes specified in subsection (1) and to provide whatever assistance is reasonably necessary, including using any data storage, processing or retrieval device or system to produce, in any form, the document or record.

Compliance

(3) If an agent requires a person to produce a document or record and to provide assistance under clause (2) (b), the person shall produce the document or record or provide the assistance, as the case may be.

Inquiries made of permittees

35. (1) A duly appointed agent of a transportation network company that has issued an operating permit to a permittee may make inquiries in accordance with this section for the purpose of,

(a) ensuring that the permittee complies with this Act and the regulations;

(b) dealing with a complaint against the permittee made in accordance with the complaint procedure mentioned in clause 25 (b); or

(c) ensuring that the permittee remains entitled to an operating permit.

Inquiries

(2) As part of making inquiries under this section, an agent may,

(a) make reasonable inquiries of any person, orally or in writing, with respect to anything relevant to the purposes specified in subsection (1); or

(b) require a person to produce any document or record relevant to the purposes specified in subsection (1) and to provide whatever assistance is reasonably necessary, including using any data storage, processing or retrieval device or system to produce, in any form, the document or record.

Compliance

(3) If an agent requires a person to produce a document or record and to provide assistance under clause (2) (b), the person shall produce the document or record or provide the assistance, as the case may be.

Part V
GEneral

Offences

36. (1) A person is guilty of an offence if the person,

(a) furnishes false information in an application for a licence or an operating permit or in any statement required under this Act; or

(b) contravenes or fails to comply with any section of this Act or the regulations.

Same, corporations

(2) If a corporation commits an offence under subsection (1), a director, officer, employee or agent of the corporation who directed, authorized, assented to, acquiesced in or failed to take all reasonable care to prevent the commission of the offence, is also guilty of an offence, whether or not the corporation has been prosecuted for the offence.

Same, entities

(3) If an unincorporated entity furnishes false information in an application for a licence or in any statement required under this Act or contravenes or fails to comply with any section of this Act or the regulations, an officer, employee or agent of the entity that directed, authorized, assented to, acquiesced in or failed to take all reasonable care to prevent the entity’s conduct is guilty of an offence.

Penalties

(4) A person or entity that is convicted of an offence under this Act is liable to,

(a) a fine of not more than $50,000, in the case of an individual; or

(b) a fine of not more than $100,000, if the person or entity is not an individual.

Limitation

(5) No proceeding under this section shall be commenced more than two years after the facts upon which the proceeding is based first came to the knowledge of,

(a) the Board if the proceeding is for an offence committed by a transportation network company; or

(b) the transportation network company that issued the operating permit if the proceeding is for an offence committed by a permittee.

Confidentiality

37. (1) A person who obtains information in the course of exercising a power or carrying out a duty related to the administration of this Act or the regulations shall preserve secrecy with respect to the information and shall not communicate the information to any person except,

(a) as is required in connection with a proceeding under this Act or in connection with the administration of this Act or the regulations;

(b) to a ministry, department or agency of a government engaged in the administration of legislation similar to this Act or legislation that protects consumers or to any other entity to which the administration of legislation similar to this Act or legislation that protects consumers has been assigned;

(c) as authorized under the Regulatory Modernization Act, 2007;

(d) to a prescribed entity or organization, if the purpose of the communication is consumer protection;

(e) to a law enforcement agency;

(f) to the counsel of the person communicating the information; or

(g) with the consent of the person to whom the information relates.

Testimony

(2) Except in a proceeding under this Act, no person shall be required to give testimony in a civil proceeding with regard to information obtained in the course of exercising a power or carrying out a duty related to the administration of this Act or the regulations.

Service

38. (1) Any notice, order or request is sufficiently given or served if it is,

(a) delivered personally;

(b) sent by registered mail; or

(c) sent by another manner if the sender can prove receipt of the notice, order or request.

Deemed service

(2) If service is made by registered mail, the service shall be deemed to be made on the third day after the day of mailing unless the person on whom service is being made establishes that the person did not, acting in good faith, through absence, accident, illness or other cause beyond the person’s control, receive the notice, order or request until a later date.

Exception

(3) Despite subsections (1) and (2), the Tribunal may order any other method of service it considers appropriate in the circumstances.

Fees

39. (1) The Minister responsible for the administration of this Act may, by order, establish fees that are payable under this Act in respect of a licence issued by the Board or a renewal of such a licence.

Legislation Act, 2006, Part III

(2) An order made under this section is not a regulation for the purposes of Part III (Regulations) of the Legislation Act, 2006.

Regulations

40. The Lieutenant Governor in Council may make regulations,

(a) specifying any matter or thing that this Act describes as being prescribed, specified in the regulations or done in accordance with them;

(b) exempting any person or class of persons or class of activities from any provision of this Act or the regulations and attaching conditions to an exemption;

(c) specifying rules relating to addresses for service under this Act;

(d) providing for any transitional matter necessary for the effective implementation of this Act or the regulations, including,

(i) authorizing persons who are not licensees but who act as transportation network companies before section 3 comes into force to continue to so act, subject to the requirements set out in the regulations,

(ii) authorizing persons who are not permittees but who operate transportation network vehicles before section 13 comes into force to continue to so act, subject to the requirements set out in the regulations, and

(iii) governing the application of prescribed provisions of this Act and the regulations to licensees, permittees and other prescribed persons;

(e) governing applications, under section 4, for a licence or a renewal of licence and the terms of a licence issued by the Board;

(f) requiring licensees under licences issued by the Board to notify the Board in writing of any change in the information that they were required to include in the application for their licence or the renewal of their licence, as applicable, and specifying the time and other conditions for providing the notice;

(g) requiring licensees under licences issued by the Board to provide information to the Board that is relevant to the administration of this Act and requiring that the information be verified by affidavit;

(h) requiring licensees to provide, on request and in the prescribed circumstances, proof of their licence and prescribing the nature of the proof and the manner in which it is to be provided;

(i) governing applications for an operating permit;

(j) requiring permittees to notify the transportation network company that issued their operating permits in writing of any change in the information that they were required to include in the application for their operating permit and specifying the time and other conditions for providing the notice;

(k) requiring permittees to provide information to the transportation network company that issued their operating permits that is relevant to the administration of this Act and requiring that the information be verified by affidavit;

(l) requiring permittees to provide, on request and in the prescribed circumstances, proof of their operating permit and prescribing the nature of the proof and the manner in which it is to be provided;

(m) authorizing the transportation network company that issues an operating permit to require the permittee to provide information to the company about the permittee’s business, including financial information, within the time and in the manner that the company specifies;

(n) governing the insurance that licensees or permittees must have, including,

(i) prescribing the types of insurance they must have, and

(ii) prescribing the minimum amounts for which they must be insured under each type of insurance;

(o) governing the documents and records that licensees must keep, including the manner and location in which licensees must keep them and the time periods for which they must keep them and authorizing,

(i) the Board to specify the location at which licensees must keep them, in the case of licences issued by the Board, or

(ii) the municipality to specify the location at which licensees must keep them, in the case of licences issued by a municipality.

Review of Act

41. A committee of the Legislative Assembly shall,

(a) begin a comprehensive review of this Act not later than the fifth anniversary of the day on which this section comes into force; and

(b) within one year after beginning that review, make recommendations to the Assembly concerning amendments to this Act.

Part VI
Consequential Amendments

City of Toronto Act, 2006

42. (1) Subsection 3 (1) of the City of Toronto Act, 2006 is amended by adding the following definitions:

“taxicab” does not include a transportation network vehicle; (“taxi”)

“transportation network” means a digital network or other electronic means that allows persons to arrange to receive transportation, for compensation, in a transportation network vehicle; (“réseau numériquede transport”)

“transportation network vehicle” means a motor vehicle, within the meaning of the Highway Traffic Act, that,

(a) has a seating capacity of not more than 10 persons, exclusive of the driver, and

(b) is hired through the use of a transportation network for one specific trip for the transportation exclusively of one person or group of persons or their personal belongings, where only one fare or charge is collected or made for the trip,

but does not include a taxicab, for which the owner or driver is required to have a licence under a by-law made under this Act; (“véhicule de réseau”)

(2) Subsection 56 (1) of the Act is amended by adding the following paragraph:

5.1 Transportation network vehicles.

(3) The Act is amended by adding the following section:

Restrictions re transportation network vehicles

94.1 (1) Despite sections 6, 7 and 8, the City shall not pass a by-law under those sections,

(a) requiring owners and drivers of transportation network vehicles to be licensed, including, with respect to those vehicles,

(i) establishing the rates or fares to be charged for the conveyance of property or passengers in the vehicles,

(ii) providing for the collection of the rates or fares charged for the conveyance of property or passengers in the vehicles, and

(2) A by-law passed under sections 7 and 8 that requires a transportation network company to be licensed shall not require the company to require that any person who operates a transportation network vehicle that is hired through the use of the transportation network to do anything that subsection (1) prohibits the City from requiring the operator to do.

Same, no prohibition

(3) Despite section 6, a by-law passed under section 7 or 8 shall not prohibit a transportation network company from operating a transportation network if,

(a) the company holds a licence issued by the City, if the City is legally authorized to pass a by-law described in subsection (2) that requires transportation network companies to be licensed and has passed such a by-law; or

(b) the company holds a licence issued by the Ontario Highway Transport Board under the Transportation Network Vehicles Act, 2016, in all other cases.

(4) Subsection 98 (3) of the Act is amended by striking out “and taxicabs” and substituting “taxicabs and transportation network vehicles”.

(5) Clause 98 (4) (b) of the Act is repealed and the following substituted:

(b) require the owner or occupier of a public place, the employer of a workplace, other than a public transportation vehicle, a taxicab and a transportation network vehicle, or the owner or operator of a public transportation vehicle, a taxicab or transportation network vehicle to ensure compliance with the by-law.

(6) The definition of “workplace” in subsection 98 (6) of the Act is repealed and the following substituted:

“workplace” includes a public transportation vehicle, a taxicab and a transportation network vehicle.(“lieu de travail”)

(7) Section 267 of the Act is amended by adding the following subsections:

Tax on transportation network companies

(3.1) Despite paragraph 1 of subsection (2), the City may, by a by-law passed in accordance with subsection (1), impose a tax on a transportation network company to which it issues a licence described in subsection 94.1 (2), if,

(a) the purpose of the tax is to establish a fund for the purpose described in subsection (3.2); and

(b) the tax is calculated as an amount, not to exceed 5 cents, for each fare that the operator of a transportation network vehicle charges a person for a trip in the vehicle that the person has arranged to take through the use of the transportation network.

Purpose of fund

(3.2) The City may use the fund mentioned in subsection (3.1) only for the purpose of helping to ensure that there are transportation network companies, taxicabs and other transportation facilities operating in the City that allow persons to arrange to receive transportation in motor vehicles, within the meaning of the Highway Traffic Act, that are wheelchair accessible.

(8) Subsection 395 (3) of the Act is amended by adding the following clause:

(d.1) transportation network vehicles;

Highway Traffic Act

43. (1) Clause 39.1 (1) (b) of the Highway Traffic Act is repealed and the following substituted:

(b) a municipal by-law passed under sections 85 to 96 of the City of Toronto Act, 2006 or Part IV of the Municipal Act, 2001;

(b.1) the Transportation Network Vehicles Act, 2016;

(2) Section 39.1 of the Act is amended by adding the following subsection:

Same, transportation network vehicles

(8.1) Despite the regulations made under section 56, if a person is convicted of an offence under clause (1) (b) or (b.1), the Registrar shall record in respect of the person, as of the date of commission of the offence, six demerit points.

45. (1) Subsection 1 (1) of the Municipal Act, 2001 is amended by adding the following definitions:

“taxicab” does not include a transportation network vehicle; (“taxi”)

“transportation network” means a digital network or other electronic means that allows persons to arrange to receive transportation, for compensation, in a transportation network vehicle; (“réseau numérique de transport”)

“transportation network vehicle” means a motor vehicle, within the meaning of the Highway Traffic Act, that,

(a) has a seating capacity of not more than 10 persons, exclusive of the driver, and

(b) is hired through the use of a transportation network for one specific trip for the transportation exclusively of one person or group of persons or their personal belongings, where only one fare or charge is collected or made for the trip,

but does not include a taxicab, for which the owner or driver is required to have a licence under a by-law made under this Act; (“véhicule de réseau”)

(2) Subsection 69 (1) of the Act is amended by adding the following paragraph:

5.1 Transportation network vehicles.

(3) Subsection 115 (3) of the Act is amended by striking out “and taxicabs” and substituting “taxicabs and transportation network vehicles”.

(4) Clause 115 (4) (g) of the Act is repealed and the following substituted:

(g) require the owner or occupier of a public place, the employer of a workplace, other than a public transportation vehicle, a taxicab and a transportation network vehicle, or the owner or operator of a public transportation vehicle, a taxicab or transportation network vehicle to ensure compliance with the by-law.

(5) The definition of “workplace” in subsection 115 (11) of the Act is repealed and the following substituted:

“workplace” includes a public transportation vehicle, a taxicab and a transportation network vehicle.(“lieu de travail”)

(6) The Act is amended by adding the following section:

Transportation network vehicles

156.1 (1) Despite sections 8, 9, 10 and 11, no local municipality or upper-tier municipality shall pass a by-law under those sections,

(a) requiring owners and drivers of transportation network vehicles to be licensed, including, with respect to those vehicles,

(i) establishing the rates or fares to be charged for the conveyance of property or passengers in the vehicles,

(ii) providing for the collection of the rates or fares charged for the conveyance of property or passengers in the vehicles, and

(2) A by-law passed under sections 9, 10 and 11 that requires a transportation network company to be licensed shall not require the company to require that any person who operates a transportation network vehicle that is hired through the use of the transportation network to do anything that subsection (1) prohibits the municipality from requiring the operator to do.

Same, no prohibition

(3) Despite section 8, a by-law passed under any of sections 9, 10 and 11 shall not prohibit a transportation company from operating a transportation network if,

(a) the company holds a licence issued by the municipality, if the municipality is legally authorized to pass a by-law described in subsection (2) that requires transportation network companies to be licensed and has passed such a by-law; or

(b) the company holds a licence issued by the Ontario Highway Transport Board under the Transportation Network Vehicles Act, 2016, in all other cases.

(7) The Act is amended by adding the following Part:

PART VII.1
ACCESSIBLE MOTOR VEHICLES FUND

Tax on transportation network companies

305.1 (1) A municipality may, by by-law, impose a tax on each transportation network company to which it issues licences described in subsection 156.1 (2) if,

(a) the purpose of the tax is to establish a fund for the purpose described in subsection (4);

(b) the tax is calculated as an amount, not to exceed 5 cents, for each fare that the operator of a transportation network vehicle charges a person for a trip in the vehicle that the person has arranged to take through the use of the transportation network;

(c) the by-law satisfies the criteria described in subsection (2); and

(d) the other prescribed conditions, if any, are also satisfied.

Requirements for by-law

(2) A by-law described in subsection (1) must satisfy the following criteria:

1. It must state the subject of the tax to be imposed.

2. It must state the tax rate or the amount of tax payable.

3. It must state the manner in which the tax is to be collected, including the designation of any persons who are authorized to collect the tax as agents for the municipality.

Other contents of by-law

(3) A by-law described in subsection (1) may provide for,

(a) exemptions from the tax;

(b) rebates of tax;

(c) penalties for failing to comply with the by-law;

(d) interest on outstanding taxes or penalties;

(e) the assessment of outstanding tax, penalties or interest;

(f) audit and inspection powers;

(g) the establishment and use of dispute resolution mechanisms;

(h) the establishment and use of the enforcement measures that the municipality considers appropriate if an amount assessed for outstanding tax, penalties or interest remains unpaid after it is due, including measures such as garnishment, the seizure and sale of property and the creation and registration of liens;

(i) the other matters that the municipality considers appropriate.

Purpose of fund

(4) The municipality may use the fund mentioned in subsection (1) only for the purpose of helping to ensure that there are transportation network companies, taxicabs and other transportation facilities operating in the municipality that allow persons to arrange to receive transportation in motor vehicles, within the meaning of the Highway Traffic Act, that are wheelchair accessible.

Regulations re power to impose tax

305.2 On the recommendation of the Minister of Finance, the Lieutenant Governor in Council may make regulations for the purposes of this Part,

(a) prescribing conditions that must be satisfied with respect to the imposition of a tax by a by-law made under subsection 305.1 (1);

(b) prescribing other matters that the Lieutenant Governor in Council considers necessary or advisable to carry out the intent and purpose of this Part.

Public Vehicles Act

46. (1) The definition of “public vehicle” in subsection 1 (1) of the Public Vehicles Act is amended by adding “transportation network vehicles” after “taxicabs”.

(2) The definition of “taxicab” in subsection 1 (1) of the Act is amended by adding “but does not include a transportation network vehicle” at the end.

(3) Subsection 1 (1) of the Act is amended by adding the following definitions:

“transportation network” means a digital network or other electronic means that allows persons to arrange to receive transportation, for compensation, in a transportation network vehicle; (“réseau numérique de transport”)

“transportation network vehicle” means a motor vehicle, within the meaning of the Highway Traffic Act, that,

(a) has a seating capacity of not more than 10 persons, exclusive of the driver, and

(b) is hired through the use of a transportation network for one specific trip for the transportation exclusively of one person or group of persons or their personal belongings, where only one fare or charge is collected or made for the trip,

but does not include a taxicab, for which the owner or driver is required to have a licence under a by-law made under the City of Toronto Act, 2006 or the Municipal Act, 2001; (“véhicule de réseau”)

PART VII
Commencement and Short Title

Commencement

47. The Act set out in this Schedule comes into force on the day the Opportunity in the Sharing Economy Act, 2016 receives Royal Assent.

Short title

48. The short title of the Act set out in this Schedule is the Transportation Network Vehicles Act, 2016.

EXPLANATORY NOTE

The Bill consists of three Schedules. The commencement provisions for each of the Schedules are set out in the Schedules.

The Competition in Public Sector Employee and Contractor Expenses Act, 2016 prohibits any person or body that forms part of the public sector from refusing to consider a bid for work or from refusing to enter into a contract for work for the sole reason that the persons who will perform the work, or any part of it, can or will, in order to perform the work, arrange to do either of the following:

1. To receive transportation in transportation network vehicles through the use of a transportation network in accordance with the Transportation Network Vehicles Act, 2016.

2. To use space in residential property owned by an individual in accordance with section 91.1 of the City of Toronto Act, 2006 or section 153.1 of the Municipal Act, 2001.

No person or body that forms part of the public sector and that engages any employee or contractor to perform work on its behalf shall prevent the employee or contractor from arranging, in order to perform the work, to do either of the foregoing.

The term “public sector” is broadly defined.

Schedule 2
AMENDMENTS RELATED TO HOME AND PARKING SHARING

The Act amends the City of Toronto Act, 2006 and the Municipal Act, 2001 to allow individual owners of residential property, for consideration, to share space in their property, including parking spaces, without having a licence issued by the municipality if the following two tests are met: the owner must have property insurance for the space and no third party must use the space for a total of more than 120 days in a calendar year if it is not a parking space. If those conditions are met, then no zoning by-law passed under the Planning Act can deem that any change of use has occurred for the purposes of that Act.

If an individual owner of residential property allows a third party, for consideration, to use a parking space located on the property, the owner is required to ensure that each parking space located on the property has direct and unrestricted access to the roadway to which the property has access.

SCHEDULE 3
Transportation Network Vehicles Act, 2016

The Transportation Network Vehicles Act, 2016 regulates transportation network vehicles which are defined as motor vehicles that provide transportation to no more than 10 persons for compensation and that the persons arrange to hire by using an electronic transportation network. A transportation network company is defined as the person or entity that operates a transportation network.

Part I

Part I deals with definitions and preliminary matters.

Part II

A transportation network company is required to hold a licence in order to operate. If a municipality has legally passed a by-law requiring the company to be licensed, the licence is issued by the municipality. Otherwise the licence is issued by the Ontario Highway Transport Board. An applicant for a licence from the Board is required to meet the requirements that the regulations made under the Act prescribe and is not eligible for a licence if the applicant has contravened the Act or the regulations. The Board can impose conditions on licences that it issues and can revoke or suspend them after allowing the licensee a right to a hearing by the Licence Appeal Tribunal.

The driver of a transportation network vehicle is required to have an operating permit issued by the transportation network company that operates the transportation network that passengers use to hire the vehicle. The Act sets out eligibility criteria for an applicant, which include the requirement that the applicant be an individual who holds a valid driver’s licence, who is legally entitled to use a motor vehicle that has valid automobile insurance and who has not been convicted of any offences under the Criminal Code (Canada). The transportation network company can impose conditions on operating permits that it issues and can revoke or suspend them, without any hearing, if it has reasonable grounds to believe that the driver has contravened the Act or the regulations.

Part III

A transportation network company must ensure that its network does not allow drivers to operate transportation network vehicles unless they hold an operating permit and must monitor the drivers. A transportation network company must ensure that the network provides information about drivers and the fares that drivers will charge. A transportation network company must also keep records of persons who contact the network and must issue electronic receipts to passengers with details of their trip. If the Ontario Highway Transport Board has licensed a transportation network company, the Board can impose a tax on the company based on the fares charged for transportation network vehicles that are hired through the use of the network. The purpose of the tax is to fund the provision of transportation services that are wheelchair accessible. The amount of the tax must not exceed 5 cents for each fare that is charged for a ride in a transportation network vehicle.

A driver of a transportation network vehicle is not allowed to accept passengers except through the use of the network. A driver must also keep records of trips.

Part IV

A duly appointed agent of the Ontario Highway Transport Board can make inquiries and ask to see the records of the transportation network companies to which it has issued licences. A duly appointed agent of a transportation network company can make inquiries and ask to see the records of the drivers of transportation network vehicles to whom it has issued operating permits.

Part V

It is an offence for a person to contravene any section of the Act or the regulations. It is also an offence for an officer, employee or agent of an unincorporated entity to direct the entity to contravene any section of the Act or the regulations or to fail to take reasonable care to prevent the entity from engaging in such a contravention.

Part VI, Consequential Amendments

The Act amends the City of Toronto Act, 2006 and the Municipal Act, 2001 to remove the power that the municipality presently has to license drivers of transportation network vehicles or to prohibit them from operating. Each municipality continues to have the power to license transportation network companies, but not to prohibit them from operating. Each municipality is allowed, by by-law, to impose a tax on the transportation network companies that it licenses. The tax is calculated as an amount, not to exceed 5 cents, for each fare that is charged for a ride arranged by each such company. The purpose of the tax is to establish a fund that the municipality can use only to ensure that there are transportation network vehicles, taxicabs and other transportation facilities operating in the municipality that are wheelchair accessible.

The Act amends the Highway Traffic Act. A person, who is convicted of the offence of driving a taxicab without a municipal licence, if required, or a transportation network vehicle without an operating permit issued under the Transportation Network Vehicles Act, 2016, will receive six demerit points under the Act for the offence.

The Act amends the Public Vehicles Act to ensure that the Act does not apply to drivers of transportation network vehicles.